Transferring from Fidelity

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Topic Author
Aceea
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Joined: Sun Dec 05, 2021 12:39 am

Transferring from Fidelity

Post by Aceea »

I currently have about 20k in a three fund portfolio (60% FSKAX, 15% FTIHX, 15% FXNAX) that I purchased in early November of this year. I want to switch to Schwab and have already initiated a full account transfer but I’m now wondering if that’s the best way to go about this. I’m particularly worried about fees from Schwab for selling Fidelity funds or from automatically reinvesting dividends. Should I try to sell the funds at Fidelity and do a cash transfer and rebuy Schwab equivalent funds to avoid fees from Schwab? Thanks for any advice.

Edit: Yes, this is a taxable account. My total portfolio is down and I just bought last month so tax implications are minimal.
Last edited by Aceea on Sun Dec 05, 2021 10:38 am, edited 1 time in total.
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khangaroo
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Re: Transferring from Fidelity

Post by khangaroo »

I’m assuming his is a taxable account and if so I would consider how a sale in the Fidelity account would trigger a tax event where an in-kind transfer might not create one.

I recently did a similar transfer where I moved my Roth IRA from TDA to Fidelity and had to pay $75/trade to switch my Vanguard funds to Fidelity. However, the long run should be better as every new invest will be free vs. $75 at TDA.

So first thing I would do is check the tax implications and then come to terms that I’ll have to pay some trading fees. Or call Schwab directly and see if they have some kind of fee-waiving for switching over to them but you already initiated the transfer so that ship might have sailed. Never hurts to ask though.
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LiveSimple
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Re: Transferring from Fidelity

Post by LiveSimple »

Transfer to Schawb, the dollar after selling the funds in Fidelity, and buy Schawb total stock index mutual funds.

Or start buying ETFs such as VTI or ITOT, then you can move around in kind.
Invest when you have the money, sell when you need the money, for real life expenses...
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Wiggums
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Re: Transferring from Fidelity

Post by Wiggums »

Aceea wrote: Sun Dec 05, 2021 12:47 am I currently have about 20k in a three fund portfolio (60% FSKAX, 15% FTIHX, 15% FXNAX) that I purchased in early November of this year. I want to switch to Schwab and have already initiated a full account transfer but I’m now wondering if that’s the best way to go about this. I’m particularly worried about fees from Schwab for selling Fidelity funds or from automatically reinvesting dividends. Should I try to sell the funds at Fidelity and do a cash transfer and rebuy Schwab equivalent funds to avoid fees from Schwab? Thanks for any advice.
When you sell a fund, it’s important to know and consider the tax implications. Without this information, it’s difficult to say what you should do. Since you purchased the funds in November, your gains are probably minimal.

Transferring cash is a good option. Are you sure that Schwab will charge you to sell the Fidelity funds? Schwab does not charge a fee for reinvestments of dividends into Fidelity funds. The other option is to keep the Fidelity funds and by only Schwab funds with new money.

The previous response is correct. ETFs ate more portable between brokers.
"I started with nothing and I still have most of it left."
dukeblue219
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Re: Transferring from Fidelity

Post by dukeblue219 »

No no no. Don't sell and transfer cash unless you absolutely have to. There's too much risk that your transfer will take longer than expected and the market will jump 10% while you sit in cash.

I'm not aware of any mainstream broker who charges for SELLING a mutual fund that isn't on their free list. Even if they did, I'd rather that risk that being out of the market, especially as volatile as its been lately.
UpperNwGuy
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Re: Transferring from Fidelity

Post by UpperNwGuy »

Why not just stay at Fidelity? Or, alternatively, leave what you have at Fidelity, stop adding to it, and make your new investments at Schwab?
aristotelian
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Joined: Wed Jan 11, 2017 7:05 pm

Re: Transferring from Fidelity

Post by aristotelian »

Talk to Schwab. They have excellent customer service. Very likely there will be no fee for selling.
pshonore
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Re: Transferring from Fidelity

Post by pshonore »

I just did a partial transfer (taxable brokerage acct - ETFs and a couple of individual stocks) from Fido to Etrade. Entirely on line - took a few days for Etrade to do a pull. They don't transfer fractional shares so you can either sell the fractions or keep them. No charge on either end but I left some holdings in the Fido account so it wasn't closed.
increment
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Re: Transferring from Fidelity

Post by increment »

dukeblue219 wrote: Sun Dec 05, 2021 6:48 am I'm not aware of any mainstream broker who charges for SELLING a mutual fund that isn't on their free list.
Vanguard may, reportedly.
sycamore
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Re: Transferring from Fidelity

Post by sycamore »

increment wrote: Sun Dec 05, 2021 8:22 am
dukeblue219 wrote: Sun Dec 05, 2021 6:48 am I'm not aware of any mainstream broker who charges for SELLING a mutual fund that isn't on their free list.
Vanguard may, reportedly.
Merrill Edge charges $19.95 to buy or sell Vanguard mutual funds.

At https://www.merrilledge.com/pricing, expand the Mutual Fund section. Vanguard funds are in the "No load, transaction fee funds (TF)" category.
$19.95 per transaction
$29.95 broker-assisted transaction
Applies to buy, sell and exchanges.
iamblessed
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Location: St. Louis

Re: Transferring from Fidelity

Post by iamblessed »

sycamore wrote: Sun Dec 05, 2021 9:16 am
increment wrote: Sun Dec 05, 2021 8:22 am
dukeblue219 wrote: Sun Dec 05, 2021 6:48 am I'm not aware of any mainstream broker who charges for SELLING a mutual fund that isn't on their free list.
Vanguard may, reportedly.
Merrill Edge charges $19.95 to buy or sell Vanguard mutual funds.

At https://www.merrilledge.com/pricing, expand the Mutual Fund section. Vanguard funds are in the "No load, transaction fee funds (TF)" category.
$19.95 per transaction
$29.95 broker-assisted transaction
Applies to buy, sell and exchanges.
Ally charges $10 for a buy or a sell.
dukeblue219
Posts: 4071
Joined: Fri Jan 29, 2016 11:40 am

Re: Transferring from Fidelity

Post by dukeblue219 »

Alright I stand corrected on the fee to sell at numerous brokerages :D. Schwab as others mentioned should be free to sell any fund, as is Fidelity.

I'd still transfer in kind. Look at the awful threads from April 2020 when folks rolled over 401ks and missed huge swings (good or bad).
Topic Author
Aceea
Posts: 2
Joined: Sun Dec 05, 2021 12:39 am

Re: Transferring from Fidelity

Post by Aceea »

Alright, so the obvious solution I missed was to ask Schwab directly. Talked to them and they will not impose any fees for selling Fidelity MFs or for reinvesting dividends. Given that, it seems there would be no reason to try and change out the Fidelity funds beyond future portability (which I don’t plan to do). Future investments I’ll make into ETFs or Schwab MFs as there will be a fee for buying Fidelity then. Unless I’m missing some other aspect? Thanks everyone!
UpperNwGuy wrote: Sun Dec 05, 2021 6:51 am Why not just stay at Fidelity? Or, alternatively, leave what you have at Fidelity, stop adding to it, and make your new investments at Schwab?
I had a bad experience with Fidelity and just want to wash my hands of them (besides, now, holding their mutual funds haha).
UpperNwGuy
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Re: Transferring from Fidelity

Post by UpperNwGuy »

Aceea wrote: Sun Dec 05, 2021 10:43 am
UpperNwGuy wrote: Sun Dec 05, 2021 6:51 am Why not just stay at Fidelity? Or, alternatively, leave what you have at Fidelity, stop adding to it, and make your new investments at Schwab?
I had a bad experience with Fidelity and just want to wash my hands of them (besides, now, holding their mutual funds haha).
Ahhh.... a key fact you omitted from your original post.

Sorry you had your bad experience. I have accounts at Vanguard, Fidelity, and Schwab, and I like Fidelity the best of the three.
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